Offer in compromise: Here’s how to value your income in negotiating with the IRS

If you are considering an offer in compromise with the IRS, the amount of money you make can play a crucial role in your settlement.
In an offer in compromise, the IRS will take what you earn, subtract what you spend (provided it is within government allowances) and arrive out how much money you have every month to repay [...]

Knock, knock – the IRS is at my door – how should I handle it?

I received a call this week from a small businessman in Cincinnati who had an IRS Revenue Officer sitting in his living room.  Technically, he did not have to let the Revenue Officer in his house, but he did.  I am glad he called me. 
My client handled the situation correctly – professional, courteous and honest.  This [...]

Five ways to lower the value of your offer in compromise

Being successful in an offer in compromise can depend on how much you know about IRS settlement guidelines.  An offer in compromise is a negotiation – you may have points to make with the IRS that only you can raise. 
Here are five pointers to lower the value of your offer in compromise: 
(1)      Make sure you claim property the IRS cannot take [...]

Your budget vs. IRS expense allowances – How do you compare?

In determining whether you can repay a delinquent tax liability, the IRS uses its own expense allowances to arrive at your cash flow.  Just because you have the expense does not mean the IRS will allow it.  
In most cases, your housing/utilities and auto operating expenses will exceed IRS guidelines.  Credit card payments are rarely [...]

Gas at $4.00 gallon; IRS National Standards lag behind

The Speedway gas station I can see from my suburban office window lists gas at $4.00 gallon. It now costs about $75 to fill-up a F-150 truck these days. At one fill-up per week, that is $325 per month for gas for one family car.
The IRS, in reviewing an ability to repay a [...]

IRS Financial Statements Revised – Traps Included!

For the first time in 4 years, the IRS revised the financial statements that are required to be used in collection cases.   There are several changes that are noteworthy, and to be careful with when answering.  On Form 433B, used to investigate businesses with IRS problems, the IRS asks who is responsible for depositing payroll taxes.  
The [...]